Alberta
Red Deer Recovery Community will offer hope for residents from Central Alberta and around the world
Central Albertans won’t be the only ones paying close attention to the official opening of the Red Deer Recovery Community next month. According to Marshall Smith, Chief of Staff to Premier Danielle Smith, jurisdictions from across North America will be looking to the Red Deer Recovery Community for potential answers to their own issues. Red Deer Recovery Community will be the first of 11 the province is opening over the coming months.
Cities across North America and beyond have been battling an addictions crisis, and losing. As the number of homeless people and the number of fatal overdoses continues to rise, cities are looking for new solutions. After years of slipping further behind, Alberta has decided on a new approach to recovery and Marshall Smith has been leading the charge.
Smith is a recovering addict himself. A political organizer from BC, he once worked for former Premier Gordon Campbell. His own crisis started with alcohol, then moved to cocaine dependency before he eventually succumbed to methamphetamine use. The successful political operative found himself without work and living on the street for over four years. Eventually he benefited from a 35 day stay in a publicly funded recovery centre in BC.
Former Alberta Premier Jason Kenney brought Smith to Alberta to head up the UCP’s addictions and recovery file. His personal experiences and incredible comeback story are at the heart of Alberta’s new approach.
While the success of recovery programs vary, Marshall Smith and Dr. Christina Basedow of the Edgewood Health Network (operators of Red Deer Recovery Community) say with the right treatment and the right amount of time, they expect a very high rate of successful recoveries. Smith says the province won’t give up on patients, even if some have to go through more than once.
The Recovery Community is central to this new approach, but patients who will be able to stay for up to a year, will need somewhere to go when they leave. This week the province also announced the Bridge Healing Transitional Accommodation Program in Edmonton. This “second stage” housing will ensure former addicts have a place to stay upon leaving addiction treatment centres. This will be their home in the critical days following treatment when they need to reestablish their lives by finding work or educational opportunities.
Red Deer Mayor Ken Johnston feels the 75 bed Recovery Community will be transformation for Central Alberta. Mayor Johnston says all Central Albertans will play an important role in helping former addicts when they leave the Recovery Community.
Construction of the Red Deer Recovery Community is all but complete.
Thursday, municipal and provincial politicians toured the facility and were introduced to the operators of the new facility. Dr Christina Basedow, Western VP of Edgewood Health Network teamed up with Nicholas Milliken, Alberta’s Mental Health and Addiction Minister, to take questions about operations.
Premier Danielle Smith made the trip to Central Alberta to offer support for the project and see the facility first hand.
Red Deer Mayor Ken Johnston and Premier Danielle Smith listen to Chief of Staff Marshall Smith
In the days leading up to an official opening expected in February, Edgewood Health Network is finalizing the admission process which will see the first batch of up to 75 people suffering addictions moving into single and double occupied rooms.
The new 75-bed facility, will begin accepting residents battling addictions in February. Those residents will stay for up to a full year accessing medications, programming and developing life skills.
In the meantime the province expects a recovery industry will be developing in Red Deer including second stage housing opportunities and counselling.
Alberta
Province to double Alberta’s oil production
The Government of Alberta is working with partners to increase pipeline capacity in pursuit of its goal to double crude oil production and increase exports to the United States.
Alberta is a strong partner to the United States, currently delivering more than 4.3 million barrels per day to the U.S. The province is committed to increasing Alberta’s crude oil production and preserving and adding pipeline capacity, supporting North American energy security as well as enabling increased U.S. production.
The Government of Alberta is taking immediate action to accelerate its plan to increase pipeline capacity to get more product to market and more value for its product.
A critical step towards achieving this goal includes working directly with industry. This is why Alberta’s government has signed a letter of intent with Enbridge, which will form a working group with the Alberta Petroleum Marketing Commission (APMC). The working group will evaluate future egress, transport, storage, terminalling and market access opportunities across the more than 29,000 kilometres of the Enbridge network in support of moving more Alberta oil and gas to Canadians and American partners.
“The world needs more Alberta oil and gas, and we need to make sure Alberta is meeting those needs. Our objective of doubling oil production aligns with Enbridge’s plans to enhance its existing pipeline systems and we look forward to partnering with them to enhance cross-border transport solutions. This will also allow us to play a role in supporting the United States in its energy security and affordability goals.”
The working group will focus on preserving and optimizing egress, developing opportunities to expand along Enbridge’s current footprint, and developing new solutions to improve global market access and maximize the value of Alberta’s commodity. Additionally, it will work with government to cut red tape and streamline regulations and permitting approvals. It will also assess opportunities for shared investment and benefit to both Albertans and Enbridge by leveraging BRIK (Bitumen-Royalty-In-Kind) barrels.
“A strong and growing Alberta oil and gas transport and storage network will allow the Government of Alberta to maximize the economic benefits for all Albertans from our bitumen and natural gas royalties. We must also pursue regulatory reform where needed so Alberta can continue to be an attractive place for companies to invest.”
“Enbridge has 75 years of experience delivering Alberta’s energy, safely and cost-effectively to support the region’s economy, unlock export value and help meet North American demand. We’re prepared – and exceptionally well-positioned – to work with producers and governments to deliver capacity as production ramps up, providing cost-effective, scalable, executable solutions now and through the decade that support North American energy security, reliability and affordability.”
Alberta
Albertans still waiting for plan to grow the Heritage Fund
From the Fraser Institute
By Tegan Hill
In February 2024, the Smith government promised to share a plan to grow the Heritage Fund—Alberta’s long-term resource revenue savings fund—with the public before the end of 2024. But 2025 is upon us, and Albertans are still waiting.
The Lougheed government originally created the Heritage Fund in 1976/77 to save a share of the province’s resource wealth, including oil and gas revenues, for the future. But since its creation, Alberta governments have deposited less than 4 per cent of total resource revenue in the fund.
In other words, for decades successive Alberta governments have missed a golden opportunity. When governments make deposits in the Heritage Fund, they transform onetime (and extremely volatile) resource revenue into a financial asset that can generate more stable earnings over time. Eventually, the government could use annual income from the fund to replace volatile resource revenue in the budget.
Historically, however, rules that would have helped ensure the fund’s growth (for example, a requirement to deposit 30 per cent of resource revenue annually) were “statutory” rather than “constitutional,” which meant Alberta governments could easily disregard, change or eliminate these rules once they were no longer convenient.
And they did. The government changed that 30 per cent requirement to 15 per cent by 1982/83, and after an oil price collapse, eliminated it entirely in 1987/88. Due to a lack of consistent deposits, paired with the real value of the fund eroding over time due to inflation, and nearly all fund earnings being spent, the Heritage Fund is expected to be worth less than $25 billion in 2024/25.
Again, while Premier Smith has promised to grow the fund to between $250 billion to $400 billion by 2050, we’ve yet to see how she plans to do that. Whatever plan the government produces, it should heed lessons from other successful resource revenue savings fund such as Alaska’s Permanent Fund.
The Alaska government created its fund the same year Alberta created the Heritage Fund, but Alaska’s fund is worth roughly US$80 billion (or C$113 billion) today. What has the Alaska government done differently?
First, according to Alaska’s constitution, the state government must deposit 25 per cent of all mineral revenues into the fund each year. This type of “constitutional” rule is much stronger than a “statutory” rule that existed in Alberta. (While Canada does not have separate provincial constitutions, it’s possible to change Canada’s Constitution for province-specific measures.) Second, the Alaska government must set aside a share of the fund’s earnings each year to offset the effects of inflation—in other words, “inflation-proof” the principal of the fund to preserve its real value. And finally, the government must pay a portion of fund earnings to Alaskan citizens in annual dividends.
The logic of the first two rules is simple—the Alaskan government promotes growth in the fund by depositing mineral revenue annually, and inflation-proofing maintains the fund’s purchasing power. But consider the third rule regarding dividends.
The Alaska government created the annual dividend, paid out annually to Alaskans, to create political pressure for future governments to responsibly maintain the fund. Because citizens have an ownership share in the fund, they’re more interested in the state maximizing returns from its resource wealth. This has helped maintain and reinforce robust fiscal rules that make the Permanent Fund successful.
Based on this success, if the Smith government began contributing 25 per cent of resource revenue to the Heritage Fund and inflation-proofed the principal, it could pay each Albertan a total dividend between roughly $600 to $1,100 from 2024/25 to 2026/27, or roughly $2,300 to $4,400 per family of four. And as the fund grows, so would the dividends.
Almost one year ago, the Smith government promised a new plan for the Heritage Fund. When the plan is finally released, it should include a constitutional requirement for consistent contributions and inflation-proofing, and annual dividends for Albertans.
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